Paypal Customer Rep gave a new different fee structure. Is it true..?

[SriramVenkatesh]

Hi There,

I have been using paypal to accept payments on my personal business website in India and i always thought the fees was 2.9% (or less - based on volumes) + $0.30 ofcourse, am aware of 1% extra if the person is having a cross border account.

But right now am in New York working with a New York based company. Am planning to setup an online store for the company to sell their products online and use Paypal as the3rd party payment processor.

I submitted the proposal to the management including the paypal slab based fees and my finance manager contacted paypal customer service just to get a first hand information on the fees and to understand it clearly.

One of the representatives told her 2 things which is contradicting to the my experiences with paypal since last 5 - 7 years.

1) She told that the fees of 2.9% + $ 0.30 or whatever listed on the webiste doesnot include the VISA / Mastercard / AMEX or other cards TDR rate. That would be extra apart from the paypal fees.

For instance right we have a merchant account with some other company and AMEX charges us 3.2% as TDR rate.

So is it like if we accept payments through paypal, we will need to pay (2.9% +$0.30) + 3.2%(of amex or whatever rate contract paypal has with amex or VISA or Mastercard..?)

2) The Customer Service rep also told that, when a user checkouts from the shopping cart on our online store, the user should have a paypal account to make the payment. They cannot directly make the payment using credit card.

But this is not true. I have been using paypal and some of my clients back in India pay me without paypal account. And i even checked it out yesterday on my personal business website and it works with user not having a paypal account.

Anyone kindly clarify. 

Regards,

Sriram.

[PayPal_Adrian]

Welcome to the boards!

1)  It sounds as if they were discussing rates for Payflow Gateways or Virtual Terminals.  Those rates will vary from the standard PayPal account fee rates, which is what you are used to (for the US, 2.9% + 0.30 USD).  Our full fee schedule is available here:  www.paypal.com/fees

2)  Yes, no account is needed. 

Adrian

[SriramVenkatesh]

Thank you for your reply Adrian.

I still have trouble understanding the paypal fees.

Just so that i understand correctly.

Below are 2 scenarios how i usually will be billing my customers.

I have a Magento Online Store Setup with Paypal Express Checkout configured on Magento Shopping Cart.

The price of my product is $ 100 / unit.

There are 2 payment options that customer can choose from

(a) Paypal Express Checkout

(b) Offline Payment Method

1) If a user comes to my store and chooses paypal express checout and pays using his or her American Express Credit Card.

What will be the fees that Paypal will be charging me for the product value of $100.00

(Assuming my monthly volume is less than $ 3000 always)

2) If a user chooses Offline Payment Method, then they will be sent a Credit Card Authorization Form and we process the payment manually by logging into paypal after we receive the credit card details through FAX from the customer.

In this case what will be the fees charged by Paypal for this transaction for the product priced at $100.00.

(Assuiming, my monthly volume is less than $ 3000 always and client has sent the details of his/her American Express Card)

Regards,

Sriram

[PayPal_Adrian]

SriramVenkatesh,

What sort of manual processing are you using?  Payflow Gateway?  Payflow Link?  Virtual Terminal?  You would want to cross reference the fees for that product with the manual processing option.  Some of these options can also affect the other fees on your account.  If you could nail down the exact product you're using, I might be able to help you further, but as it stands, the most I can do is point you towards www.paypal.com/fees.

Thanks!

Adrian